Is Gold in a Bubble?

By Greg Hunter’s

USAWatchdog.com   

With gold hitting all time nominal highs this week, the recurring question is “Is gold in a bubble?”  The yellow metal has been flirting with the $1,300 an ounce mark, and some folks are getting a little worried it has gone too far too fast.  If anything, gold has not gone far or fast enough if you compare it to the U.S. debt and future commitments.  According to Boston University economics professor Laurence Kotlikoff, the U.S. is “bankrupt.”  Kotlikoff says, “Congress has engaged in Enron accounting,” and the real deficit is “$202 trillion”—15 times worse than official government projections.  We will never be able to pay this amount in real money!  $202 trillion is more than three times the entire world GDP!!  (Click here for the complete Kotlikoff story.) 

The main reason gold has been on the rise is the Federal Reserve setting the stage for another $1 trillion dollars of “Quantitative Easing” or money printing.  Here’s how expert trader Dan Norcini summed up the Fed actions this week.  He said on JSMineset.com, “If the FED wanted to give the Dollar the kiss of death with yesterday’s FOMC release, they certainly managed to accomplish their task. It continued its descent which began as soon as the statement hit the wires yesterday and has not looked back since. . . .There were very few individual commodities that were lower today as billions more were jammed into hard assets in an attempt to shield wealth from the depredations of a currency that has broken through support levels in a manner that is frightening for its intensity.” (Click here to see the complete Norcini post.)   

Despite Fed actions that will clearly devalue the dollar, billionaire investor George Soros keeps telling the public that “nothing is safe” and gold is the “ultimate bubble.”  (Click here to see the most recent Soros interview on gold.)  I am puzzled why Soros says negative things about the precious metal when the biggest holding in his $25 billion hedge fund is GOLD! 

 Jim Willie from the “Hat Trick” newsletter said this week, “Calls of a gold bubble are shallow moronic pontifications, since the sanctioned asset bubble is the mammoth USTreasury variety. It is the last bubble before systemic failure. . . . The Gold bull will continue as long as the cost of money is negative. Investors flee the conventional paper vehicles like stocks, bonds, and housing since the system is failing and paper money in which values are denominated is fast becoming meaningless. The food prices are the big alarm bell in addition to the Gold price. Both are canaries in the coal mine. The canary is dead or dying.”  (Click here for the complete Jim Willie post.)

 Famed gold investor Jim Sinclair has been calling for gold to hit “$1,650 per ounce on or before January 14, 2011for several years.  Now others are making similar calls such as Deutsche Bank.  In a recent report titled “Why the Gold Price Rally Will Continue,” the mega bank said it would not consider gold to be in a bubble until it reached “$2,000” per ounce. (Click here to find the Deutsche Bank report on JSMineset.com.) 

According to John Williams at shadowstats.com, in order for gold to equal its 1980 true inflation adjusted $850 price, the yellow metal would have to sell for more than $7,000 per ounce.  But don’t expect gold to go up in a straight line.  Governments, manipulators on Wall Street and market forces can knock gold down at anytime.  Price fluctuations can and will be volatile according to gold experts like Sinclair, but the overall trend is decidedly up.

A very good friend of mine recently wrote me and said, “If there is total collapse of the economy and ultimately – God forbid – the nation, then I doubt that Gold will be worth anything. Bullets and canned food will. They will be very valuable. Bullets will protect you from those who would steal your canned food.  Simple, but sadly – true.”

To that I wrote back and said, “To say gold will not be worth anything is to ignore a 5,000 year track record of gold being a store of value and MONEY. Why do you think all central banks hold gold? Yes, ALL hold gold and are buying more. . . The people who have protected their wealth with SOME gold and silver will get through it a lot better than the people who don’t. Good luck with holding only beanie weenies and bullets.”

Don’t take my word that gold is NOT in a bubble.  Even former Fed Chairman Alan Greenspan warned recently that “fiat money has no place to go but gold.” (Click here for the complete story from the NY Sun.) The value of gold should not be in question.  The U.S. dollar is what is overvalued, and the rising price of gold is simply sounding an alarm that the world’s reserve currency is in deep trouble.

Comments
  1. Jimbo

    Alan Greenspan is now hawking gold? Isn’t it funny how they come to their senses AFTER they leave office. When he lorded over the heavily manipulated “Economy”, he was singing a different tune.

    The awake people of the world will continue to buy tangible assets because the awake people of the world now know just how corrupt and manipulated “Wall Street” really is. It cannot go on like that for long. It will collapse to the level where the “Real Economy” will dominate again. Just my opinion…

    I think we are already well into the collapse now. It is a little like watching an exploding supernova on the other side of the galaxy. It just appears to be exploding slowly!

    My investment advice…food, medicine, guns, bullets, communication gear, survival training…and soon!

    • Greg

      Thank you John and Jimbo,
      Greg

    • sky

      the home of modern american patriots, all articals and videos. thepost@email

    • Rishi

      Dear All

      I agree with you folks on certain things, which is ” The whole West is in a mess especially The U.S.A.. I totally agree, gold will always be a metal of immense value but to suggest what it’s value is going to be and how fast its going to get there is again nothing but dangerous speculation, which is again repeating the same folly such as what just happened with the housing market.

      I am sure people who have been speculating about it are PHD’s from top institutes in the world. LET ME AT THE VERY START SAY THIS “I don’t want to discredit anyone OR any INSTITUTION” but please spare me from the whole notion that these people know everything.

      Had there even been an iota of truth in it, there were just too many gr8 PHD’s from the best institutions in all economic recession/ depressions but none could either avert it or even get it’s timing right. Its human nature to fancy the idea of knowing the future but but to mistake it as concrete evidence is pure foolishness.

      Now as for the rest.

      Never in the modern history of man kind has there been a situation where the total economy of a country has resorted to payment in gold or silver for conducting its business.

      Lets just see what has happened after the collapse of Soviet Union. Their currency just crashed. In Russia even today the value of its currency is still in a bad shape. People there have suffered a great deal.

      Here is what I think may be a possibility. If U.S.A dollar crashes.It would mean the world reserve currency crashes. What is going to happen is that the next best currency will take the place of U.S dollar just as how U.S dollar took the place of British Pound.

      United states would not have gold or silver replacing its currency for business it would still stay very much U.S dollar. Yes the value of it would be worth dirt and the american people will endure immense hardship and poverty. Just as same in the case of any country, which has undergone such trying times.

      Gold will always be a very valuable metal but what its value should be is anybody’s guess. Whether it should attain the the value of adjusting its 30 yrs of inflation, well that is only a conjuncture. In such a situation what can be said though is that the west as we all know it today as the economic power house of the world will loose it’s status. The economic epicenter of the world will shift to a more suitable region of that time.

      While it is wise for all to hedge their wealth against the dollar; I don’t think its prudent to put all your eggs in one gold basket, an evenly diversified portfolio is certainly a better bet.

  2. John Bernard

    I’m hoping the price dips at least a little so I can buy more.

  3. Vess

    1) Soros isn’t saying bad things about gold; people keep quoting him out of context. He said that gold is the only bull market that remains. He said that gold is the ultimate bubble – “ultimate”, like “the last one”, OK? In the sense that when all other bubbles have burst, everybody will rush into gold. Essentially, a gold bubble is nothing more than a crash of the fiat currency it is measured against.

    2) Jim Willie is a shallow moron himself. His so-called newsletter is just a bunch of senseless rants. He wouldn’t know sober and objective analysis if it bit him in the butt.

    3) So, Deutsche Bank wouldn’t consider gold a bubble until it reaches $2000, yes? That’s disingenuous. What if it does so after 50 years? Bubbles are not characterized by price levels but by their speeds of ascent. A stock that goes from $1 to $100 in a year is in a bubble; a stock that goes from $1901 to $2000 is not.

    4) The fact that gold has to rise to $7000 just to meet its inflation-adjusted high from 30 years ago simply means that gold is a lousy inflation hedge – or that its price has been suppressed very effectively.

    5) In the case of the ultimate collapse, food, shelter and weapons will be the most valuable things, yes. Gold is money. Real money. But real money is not just a store of value – it is also a medium of exchange. Even in the case of a total collapse, you’ll still want to exchange your production (knives? bows? arrows?) for something you need (food? guns? bullets? a horse?). Barter will work for a time – but it’s very inconvenient. People will still need a medium of exchange – i.e., money that they can trust. Gold (and silver) will successfully perform this function.

    • Greg

      Vess,
      Vess,
      1) Please look at the video link I put in the post with the George Soros interview. He clearly says “nothing is very safe.” Soros also says “gold is certainly not safe and it is not going to last forever.” So, I do not know how you can say “Soros isn’t saying bad things about gold.”
      2) Mr. Willie has a PhD in Statistics from Carnegie Mellon University. That is hardly the credential of a “moron.” The evidence shows your analysis of him and his work is far from “sober and objective.”
      3) You say “Deutsche Bank wouldn’t consider gold a bubble until it reaches $2000, yes? That’s disingenuous.” This is evidence and facts to support my point that gold in not in a bubble.
      4) Your point that gold is “a lousy inflation hedge – or that its price has been suppressed very effectively,” is a good one but that is changing. This is the point of the post.
      5) You say, “Gold is money. Real money. But real money is not just a store of value.” 5,000 years of human history prove you demonstrably worng.
      6) Thank you for your comment even though I disagree with you. I always say, “Good men can disagree.”

      • Vess

        1) Of course nothing lasts forever. The bull market in gold won’t last forever, either. This doesn’t mean that having gold is bad.

        2) I don’t care where he has a Ph.D. from. Bernanke has a Ph.D. too. You can guess what my opinion of him is, can’t you? ;) Just read a few issues of Jim Willie’s newsletter and you’ll see what I mean. If you know technical analysis, one look at his charts will show you that his knowledge in this area is similarly lacking. He keeps drawing “diamonds” on the oscillators, ferkrissake.

        3) I was not disputing your point in any way. I was just pointing out the meaninglessness of Deutsche Bank’s statement.

        4) Look through history. Gold is *not* a good inflation hedge. Gold rises when there are high inflation *expectations* – not so much when there is high actual (price) inflation. I don’t expect this to change and I see no evidence of it changing now. Gold is raising now because people expect high (price) inflation in the future.

        5) I don’t see how history proves what I said wrong. Please read my statement again. Real money has several properties – medium of exchange, store of value, standard of measurement (of value), etc. Gold is all of these. Paper money is only one – a medium of exchange. I was pointing out that in a total collapse, people will not only need things that have value then – they will also need something that fulfills the role of real money (i.e., has the qualities mentioned above).

        • Greg

          Vess,
          “Good men can disagree.” Come back anytime. Thanks for the spirited discussion.
          Greg

  4. George

    “A very good friend of mine recently wrote me and said, “If there is total collapse of the economy and ultimately – God forbid – the nation, then I doubt that Gold will be worth anything. Bullets and canned food will. They will be very valuable. Bullets will protect you from those who would steal your canned food. Simple, but sadly – true.”
    Greg, I do believe you need some guns, bullets, storable water and food but what do you trade for gas or other things when the guy doesn’t want bullets or the food you have. Easy answer, gold and silver. What this guy may be forgetting is that homes these days are not built for a stand off against a mob of bad guys.

    • Greg

      George John and Kenny.
      Thanks guys for weighing in!
      Greg

  5. John Bernard

    Greg
    I am hoping the price drops just a bit so I can buy more

  6. Kenny G

    Thank’s Greg for answering my question, whether or not to increase my gold holdings…..the government is not going to change their tactic’s because they can’t….the dollar will continue to lose value and inflation is a given so common sense say’s by more precious metals if you can.

  7. MarkM

    Hey Greg,

    Your friend wrote:
    “A very good friend of mine recently wrote me and said, “If there is total collapse of the economy and ultimately – God forbid – the nation, then I doubt that Gold will be worth anything. Bullets and canned food will. They will be very valuable. Bullets will protect you from those who would steal your canned food. Simple, but sadly – true.”

    Your response was right-on! Gold has always held its worth relative to societal and economic collapse. Hence, the true meaning of “The Golden Rule” is: “The man with the gold, rules!”

    I believe in a balanced portfolio which includes gold, lead, food, water, and a family coalition to help protect the latter.

    Rules of engagement for societal upheaval: When in doubt, kill!

    It is sad that we are having this conversation. Our future holds a SMALL possibility that societal and economic collapse may ensue which will require survival tactics.

    markm

  8. Diane Carol Mark

    Greg,
    Perhaps a discussion on the various ways to hold gold would be supportive. Jim Sinclair advocates that the best way to hold gold for the average investor is bullion coins. These would be best secured in a safe deposit box managed by a private company (not a bank), or in a mayo jar at home. If you hold silver coins, then you have many and they are bulky (at ~$22 each); think of just $1k in silver coins.

    Then, there’s the option of holding the gold shares. This is more complex. Jim advocated “bringing your shares home”, so to speak, by eliminating as many intermediary institutions between you and your shares. But, in the case of a 401K investment, you’ve got to maintain the “holding institution” for an income tax advantage, such as Schwab or Fidelity (to name a couple possibilities).

    Now, the situation becomes a bit hazy. The issue is how does this institution handle your shares; are they on the general books (in which case if they go belly-up perhaps you’d lose your investment no matter what you were invested in), or are your gold shares segregated so that no matter what happens to the holding company, you’ll receive your money? If you asked them they “might” provide you with this answer in writing, but would their reply carry weight if the dollar declines into hyperinflation and the pressure is on?

    This topic would open up a very supportive educational discussion and probably help to protect us all.

    Thanks!
    :) Diane

    • Greg

      Thanks Diane, I think Sinclair is right on target. I would be careful who you might tell if you store gold in your home. I still like safety deposit boxes for some holdings.
      Greg

  9. Diane Carol Mark

    Yo Greg,
    My Gravatar.com photo displayed with the comment! Cool!
    :) Diane

  10. M SMITH

    I am the same camp as Jimbo & John. I started selling some of my coin collection in 1999 to buy Physical gold & silver.It was hard to sell off these coins I had worked so hard to collect,but I saw that gold/silver was dirt cheap & as a history nut, I realized there was trouble ahead. I have never played in the stock market,but I did study how it worked. It was easy to see that the PMs was manipulated by a group of banks,backed by the fed. 45 years of collecting coins saved my butt,I hope! Here is a article I read & passed along to my friends that do play in the rigged PMs markets.”http://news.coinupdate.com/how-the-little-guy-can-profit-in-manipulated-gold-and-silver-markets-0167/.” Now this is not for every one,but I know some that have added to their insurance against the depression we are in. Greg,those that say there is no inflation must not eat!

  11. OTE

    So is gold in a bubble?

    The answer is in the questions of, “Is the current price indicative of the technicals or speculation” and “Are the banks lending money for purchasing gold?”

    A bubble is purely speculative. For the bubble to exist, there must be ample amounts of the gold, real estate, stocks, etc to permit large quantities to be purchased. If the supply of whatever is scarce, the potential for the bubble to have any far reaching effects are minimal.

    So why the contention of gold being in a bubble? Please don’t attempt to tell me that those purporting that gold is in a bubble are being altruistic. Altruism doesn’t exist. Never has, never will. So why?

    Profits. Every dollar spent on gold removes that dollar from what is known as “velocity of money.” The gold vanishes into vaults, home safes and mason jars buried under the oak tree out back. The wealth ceases to exist as a national asset. No more tax revenues from it and no more trading in the markets. Money spent on gold has a very short cycle within the commerce activity of a nation. Miner – refiner – retailer – end buyer.

    Something to consider is why would any logical investor claim gold is in a bubble? Bubbles provide for large profit potential by the investment community. Screaming bubble will turn speculators away from gold limitting the profit potential.

    Perhaps the thing to look at is US government bullion coin minting. First, it is limitted. The West Point mint runs out of blanks frequently. These coins are deemed collectables by the IRS. Hmmm, denominated coins minted by the US government are collectables?

    Perhaps we need to look at the currency of the realm. Federal Reserve Notes are just prommisary notes. Payable in what? Why another prommisary note of course. If you look at a bill, you will notice that it isn’t guaranteed by the “full faith and credit of the US” any longer.

    The technicals are simple. Scarcity, durability, confidence and divisibility.

    I would contend that the real bubble is in paper money. The only positive technical for printed script is divisibility and a smattering of confidence, just a smattering.

    Those who contend that beans and bullets are the things to buy are in for a sad awakening. This isn’t going to be a short depression. The beans will vanish down our throats and bullets will fly. The only viable option is attempting as much self-sufficiency as possible and a network of like minded folks to barter with for those items you can’t make, grow or repair due to skill and time. Each within the network must do what they do best. Yep, specialization. If a person lacks skills, there is always transportation of goods between producer and consumer. Think rickshaw.

    The bubble is in the “coin of the realm.” The gold purchasing power won’t manifest itself until everything settles down and commerce moves into the regional environment and out of local.

    One caveat. Raw gold isn’t very good as a wealth preserver. Today a refiner won’t pay more than about 70-78% of spot based upon the assay results. Can you tell the gold content of a nugget? Do you think others can? Hmm, maybe 40-50% of spot if the seller of the goods you wish to purchase is a gambling man. And you paid spot or spot with a premium. Of course raw gold is pretty much untraceable compared to a coin purchase from a dealer. Life is all about choices. Choose wisely.

    • Greg

      OTE,
      This is good analysis, Thank you!
      Greg

  12. gerald peters

    as the old saying goes…
    when your shoe shine boy starts to tell you how much he is making in the gold markets, then you know the bubble has gone too far and it is time to get out.
    we are not there yet. most americans (other than a little jewelry) do not own any gold.
    and when lots of experts say something is in a bubble, then it is NOT.
    most experts only recognize a bubble long after the fact, not before it peaks.

  13. The Seer

    Hi Greg,
    We started buying in late 90′s. After hundreds of hours wrestling with stock trades we decided to just sit back and relax holding physical and patiently watch it appreciate in its long trendline. It isn’t worth trading in and out because you can’t time the manipulation very well, however, you can rely on the trend. No emotion. It is so great to not hassle the stock market any more. We also cashed out our retirement accounts several years ago and paid the 10% penalty rather than lose the 10% in value and actually gained in the metals.
    We also live outside the USA now in New Zealand. It isn’t hard to get into. We immigrated in 1992 and moved back to California in the late 90′s and returned to NZ last year as we could no longer tolerate the corruption and taxes there.
    Regarding this discussion, metals are at their best in the AFTERMATH. Americans need to prepare for everything though – survival supplies and self defense.
    Our advise is to get out and move to an agriculture strong country far away. It is a lot of work to get out and once you are out so worth it. Like building a house – it is hard to do – and at the end you are really
    rewarded. Even if you stay out half the year. Design the type of employment that allows you to work off your computer or travel. If you are retiring you are not tied down – just visit your relatives or have them visit you. I know it seems hard to leave yet it is so freeing and you aren’t subjected to the insanity.
    There are only a few unbiased, generous writers. Greg is one of them. Speaking against his words of wisdom is disrespectful and not thought out. Thank you Greg for the time and “thinking and discernment” you gift to the readers.
    In my meditations into the future, I see gold reaching US$50,000 easily and silver US$350. My prophecies are very accurate. Bank of America is going to disappear along with corporations like IBM.
    Take care everyone. Study and prepare and trust only a few.
    For world peace and prosperity for all, The Seer

    • Greg

      The Seer,
      I love this line when you are talking about investing in physical gold: “It isn’t worth trading in and out because you can’t time the manipulation very well, however, you can rely on the trend. “ So true!! And is the best way to invest in any precious metals. I think you prophecies are cool and I think the B of A one could come sooner than later. Please come back and tell us what you are thinking. Folks here love getting all kinds of good info to consider from around the globe. Thank you for your kind words.
      Peace Bro,
      Greg

      • The Seer

        Dear Sage Greg,
        Thanks for the reply.

        My perception of the future holds:
        The USA $ will be discounted considerably mid-December 2011.
        Worldwide devastation takes place sometime between 2014 – 2017.
        Far away places such as Hawaii and New Zealand will be “cut off” as one of the effects.

        Here are some inquiries to ponder upon:
        Inquiry: What if gold and silver never devalue and instead hold at the highest level, with the global elitists approval, recognizing that price point to issue their currencies at? i.e. the new model has gold and silver set the currency values rather than currencies confine gold and silver at set prices again?
        Inquiry: People believe in cycles. Are we really in the beginning of a Kondratieff winter?
        Inquiry: Is the agricultural age going to return or something else?
        Inquiry: There are more of us than the “forceful – might over right” personalities. Will we stand up together in strength or cower under continuous plundering of our constitutional – universal rights?
        Inquiry: Will the many stand up for truth and honesty in every profession? How can the honest get the dishonest to lay down their dividing communications that hold lies, greed and narrow vision?
        Inquiry: Has there ever been equality?
        Inquiry: Is there another choice higher than a republic or egalitarian governance? Does this higher or let’s say fairer/better form require an integration of inner soul leadership? If so, how in the world can this be integrated into the mass culture?
        Inquiry: People may not like most of government, however, how can such large populations live to be compatible and the weaker cared for in the downsizing? How does the family restore pure values to manage what has been given over to government?

        Anyway, I don’t want to get off subject. I just think alot is going into the push for gold to $50,000 per oz and silver to $350 oz. There will be great fear out there. Stay calm. Reality is not always what it seems. Enjoying everyone’s comments and experiences.
        Another day in my life spent inquiring and pondering,
        The Seer (a female Futurist)

        • Greg

          The Seer,
          I love your perspective. Please check in anytime and I’ll put you on.
          Greg

  14. McGoldbug

    I can’t believe you Americans pay so much for gold. In Adelaide South Australia there is a shop that buys and sells gold like french fries. On a 1oz Perth mint gold bar I pay a AU$21.00 premium. Now a bar is selling currently for Au $1358.00 so I can (and do) buy and sell over the months without the huge com missions. You guys are getting ripped off. Google Adelaide Exchange Jewellers and you will see for yourself.
    TThe only downside about Australia is that our gun laws are so tight it wwould take me a month to get a gun and even then I would have to be a member of a gun club and shoot regularly to keep it registered and maintain my licence…

    • Wilfong

      The federal reserve is introducing QE 2.0.

      Several countries around the world (China/Russia) are trying to influence other countries to not trade in Petro Dollars.

      This sounds like inflation.

      So gold can only go up?

      I don’t see food as a large problem in the United States unless you expect total collapse. We are the #1 producer of food in the world. Of course a crisis with a very large spike in oil prices could shut parts of America down very quick hurting food production. (Blame big oil on not introducing a greener solution earlier this century)

      One thing is for sure, there are trillions of variables of what could go wrong. To think there is a perfect way to prepare for bad times is ridiculous. Its better to prepare for downside risk then totally avoid it though, especially when the frequency and severity may be quite large.

      • Greg

        Wilfong,
        You are definitely on to something here.
        Greg

  15. SilverMoon

    I bought gold at $550 an ounce & kept hearing that gold would never reach $1000+, but here we are!

    My recommendation is to not buy gold/silver now. It’s too high & risky, but I will recommend that everyone buy canned food! Silly?

    Well, buy a can of beans for $1 and, with a 3 yr. expiration date, it will be $2. So, you save a $1 & don’t have to pay capital gains. I know it sounds silly but buy $25 of canned food each month & just store it away & save.

    • Greg

      Silver Moon,
      I think you could still buy them both and protect yourself from possible hyper-inflation. Silver is still very cheap, relatively speaking. You should be proud and relieved. Thank you for sharing this positive news and good advice!
      Greg

  16. Phil Warren

    Our fiat dollar will collapse. I don’t know if it will collapse in 10 months or 10 years but with our government creating over $1 trillion yearly deficits for as far as the eye can see this is our only outcome. Gold and silver will become the new currency of choice. One ounce silver eagles, rounds and pre 1964 silver coins will become the new currency of choice for purchasing everyday items. Gold coins will be used to purchase the large items such as cars or real estate. We will eventially have to return to a gold or silver standard to maintain some stability in our currency system.

    • Greg

      Thank you Phil, David and Dino!!
      Greg

  17. David

    Gold like any other form of investment will reach a bubble state when the masses all rush towards buying it. But that peak bubble state will not be reached until two conditions are reached. One, when it reaches its daily maximum limit of $75 a day, it will cease to trade on the NY futures markert for that day, AND if it does so for many consecutive days as it did just before its peak in the 1980s, i.e., today’s gold hits $75 daily maximum limit for many days in a row. Two, when the average person from taxi drivers to real estate agents suggest to you to buy gold. When these two conditions are met, it may be time to sell your gold and buy something else.

  18. dino

    Thanks Greg, I will continue to hoard the silver while guys like vess put thier faith in a fiat currency that will return to its true value……NOTHING!!!!!!!

  19. Jan

    I enjoy this site for the information, links and comments or readers. Greg is not selling anything here, just giving us well thought out and researched articles with the links to back up his opinion.

    Thanks Greg, I have learned so much since finding your web site.

    • Greg

      Jan,
      It is good to have you here as well!!!
      Greg

  20. J. Knight

    Great commentary and advice, but I have a large cache of firearms, ammo and food, and I don’t feel like I can walk away from my firearms, which have taken me years to accummulate in private sales.

    I feel I must remain in the US, and I have recently moved to a rural area far away from any major metropolitan areas.

    My grandfather, by giving me silver dollars for my birthdays, ignited an enthusiasm for silver, so I’ve acquired quite a large collection of both bullion and numismatic coins. The gold came later. Really, I could care less if gold is in a bubble or not. That is not a factor in times like these. Anyway, I feel confident in my belief that the FR will inflate, and not allow a deflation, no matter what. Hard times ahead, no doubt.

    • Greg

      J Kinght,
      I think you are doing everything right and you do not need to flee the country. America needs people like you here!!
      Greg

  21. Marc

    One only has to look at how much a silver dime is now worth compared to one made today………………..

    • Greg

      Marc,
      True that!
      Greg

  22. Joan Carleton

    Finally, we have some brave ‘learned’ professor now outwardly saying that the U.S. is bankrupt, something I’ve told people for years.

    An elementary school teacher,
    St. Louis, MO

    • Greg

      Joan Carleton,
      Your student are very lucky to have you as the teacher!! By the way, I am from the STL area and love it!! I live on the East coast now.
      Greg

  23. Patrick

    Greg…I heard you on “Coast To Coast” last night, and thought I’d check out your website. Wow! Great site! I am going to buy some gold & silver with about 20% of my portfolio. Do you think I could save some $ by holding off until January 2011, as a changing of the guard in congress coupled with consumer spending around Christmas could rally the poor old dollar toward the end of 2010? Thanks again for this tremendous flow of knowledge & opinion!

    • Greg

      Patrick,
      Do not wait. The problem in the future will be getting physical AU and AG. Good luckand thank you for the comment and kind words.

      Greg

  24. J. Knight

    Patrick, just a word of advice from a long-time buyer of precious metals. Immediately buy whatever amount of gold you determine you need for an insurance policy against a collapse of the fiat money system. That may or may not be 20% of your portfolio. Then buy gold, but especially silver, whenever there are pullbacks in the price, which will inevitably happen. This market will rise in steps and stutters, as the powers-that-be attempt to ride the monetary horse until it collapses. Your part is to exit the wagon this horse is pulling before it goes off a cliff. ASAP.

    • Greg

      J. Knight.
      This is good advice from a pro. Thank you.
      Greg

      • Patrick

        Thank you J. Knight. I’m on it! Thanks again Greg.

  25. Sam

    All I can do is echo many “preppers” regarding the “Four G’s:” God, Gold, Guns, and Garden. It is these four (plus a supply of stored food, as well as medical supplies), that will see you through.

    • Greg

      Thank you Sam.
      Greg

      • Sam

        You’re welcome. And, thanks for a great blog. I’m one of those people who heard you on “Coast to Coast A.M.,” and well, I became hooked. Thanks for being there.

        • Greg

          Thank YOU Sam!
          Greg

  26. fairguy

    http://www.youtube.com/user/TTFMjock#p/a/u/0/WKTQze2UKWc

    Gold (and silver) is money, real money so it can’t be in a bubble as there is no such thing as too much real money. Gold may shoot to the moon in term of more and more worthless fiat currency. The whole point is the elitests wanted ALL the gold by stealing and trading for it with fiat currency. This is gold confiscation by stealth. Once they own 99% of the gold, elitests (ie. BIS) will declare world currency (SDR) will back by gold but now they have all the gold – total control. The silver bullet in this dire scenario for the common man is – silver which the elitests haven’t cornered it. In a way, this way is a loophole for us which the elitest can’t put a noose on our neck.

  27. fairguy

    http://www.youtube.com/user/TTFMjock#p/a/u/0/WKTQze2UKWc

    Gold (and silver) is money, real money so it can’t get into a bubble situation as there is no such thing as having too much real money. Gold may shoot to the moon in term of more and more worthless fiat currency but that is due to a fiat paper bubble. The whole point is the elitests wanted ALL the gold by stealing and trading your gold with their make up fathom fiat currency. This is gold confiscation by stealth. Once they own 99% of the gold, elitests (ie. BIS) will declare world currency (SDR) will back by gold but now they have all the gold – total control. The silver bullet in this dire scenario for the common man is – silver which the elitests haven’t cornered it. In a way, this way is a loophole for us which the elitest can’t put a noose on our neck.

    moderator, please delete my earlier reply as i wasn’t finish before i clicked submit.

  28. John

    Some say gold / silver will collapse if there is a second stock market collapse due to algorithims. Same thing happened in 2008 mstock market collapse. Does anyone have authorative overview pertaining to correlation between algorithims and market collapses ??

  29. therooster

    It’s a dollar bubble , not a gold bubble

  30. numis network bbb

    How can atheists deny that Herod and Pontius Pilate existed when there are coins that were issued by them ?

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